Sanctions and their effectiveness are at the centre of the discussion about an appropriate response to Russia’s war of aggression against Ukraine. At the latest since the atrocities of the war became evident and payment for gas supplies in roubles was brought into play, voices calling for a...

This article discusses the economic effects of a potential cut-off of the German economy from Russian energy imports. We show that the effects are likely to be substantial but manageable. In the short run, a stop of Russian energy imports would lead to a GDP decline in range between 0.5% and 3%...